Affordable housing for young professionals


Mortgage loan disbursed for the purpose of acquisition of apartments in the  multistory building under construction at 55/3, 55/33 and 55/34 Tsarav Aghbyur street, Yerevan within the framework of “Affordable housing to young professionals”   

Borrower

Individuals, who are RA citizens and residents at the age of 20 (twenty), acting as a beneficiary of the project “Affordable housing to young professionals”. 

The borrower age should not exceed 45 (forty-five).                                              

Co-borrower

RA citizen and resident individual aged 20 (twenty), who is the member of the Borrower family and whose age shall not exceed 55 (fifty-five).   

 

Loan purpose

Apartment acquisition

Currency

 

AMD

Maximum loan amount

AMD 25.000.000 (twenty-five million). Loan-to-value ratio cannot exceed 90% 

Prepayment

No prepayment shall be made in the Bank.

Reference issued by the YSU Graduate Union NGO on the prepayment made (minimum in the amount of 10% of the purchasing value of the apartment) shall be submitted. 

 

Security

Property to be acquired

Loan maturity

120-240 months

Annual interest rate

 

7.95%

Loan repayments

Annuity

Loan disbursement mode

By tranches

1st tranche - maximum 50% of the purchasing value of the apartment

2nd tranche -  maximum 30% of the purchasing value of the apartment

3rd tranche -  maximum 10% of the purchasing value of the apartment

 

Moreover, the 3rd tranche shall be disbursed only upon completion of the construction in case the purchasing right is replaced by the right of ownership and the bank’s right of collateral over the apartment is registered based on the act of transfer of ownership right over the apartment.  

The loan might be disbursed one-time only in cases when the Borrower applies for the 3rd tranche of the loan. 

In this case a reference issued by the YSU Graduate Union NGO on the payments made shall be submitted.  

Loan and interest repayments

Monthly

Loan disbursement mode

Non-cash

Loan amounts shall be transferred to the account of YSU Graduate Union NGO opened with the bank.  

 

Insurance

Mandatory, every year.

Borrower’s and co-borrowers’  insurance against accidents and property insurance.

Insurance against accidents shall be made on the loan disbursement date in the amount of outstanding loan amount.

The property shall be insured after the 3rd tranche of the loan is disbursed irrespective of the collateral appraisal carried out by an independent appraisal company in the amount of outstanding loan amount.   

Penalty on past-due loan amount

0.3% daily

 

Penalty on past-due interest

0.5% daily

 

Annual interest rate on past-due loan amount  

CBA reference rate

 

Requirements to the Borrower’s and Co-borrowers’ credit history   

Total number of past due days of all existing and repaid loans shall not exceed 30 calendar days within 12 months preceding the loan application. Moreover, if the borrower or co-borrowers have loans, such loans shall be classified as standard only. 

Credit rating

In compliance with the “Procedure on Mortgage Lending”.

Loan application processing fee

N/A

Loan service fee

N/A

Monitoring

The Bank shall conduct monitoring of the construction at least once every 3 (three) months. 

After the completion of the construction monitoring shall be conducted in compliance with the procedure applicable at the Bank.  

 

Required documents

1. Reference issued by the YSU Graduate Union NGO on being the beneficiary of the project and on the prepayment made. 

2. The rest of the documents shall be submitted in compliance with “Procedure on Mortgage Lending”. 

 

  

List of work places and occupations of beneficiaries included in the project “Affordable housing to young professionals” 

 

Specialists of RA banks, credit institutions and insurance companies

Specialists of IT companies, IT specialists

Specialists of of telecommunication companies

Employees of the Office to the President of the Republic of Armenia

The Staff of the National Assembly of  the Republic of Armenia

The Staff of the Government of  the Republic of Armenia

The Staff of the National Security and Public Council of  the Republic of Armenia 

Public, civil, community and special servants of ministiries and government departments

Employees of museums, other art and cultural centers  

Lecturers, scientific workers, doctors, artists, journalists, pedagogues (preschool, comprehensive,  vocational-technical institutions), sportsmen 

Employees of State Non-Profit Organization, State Budgetary Institutions and Organizations

Employees of the Armenian Nuclear Power Plant CJSC

 

Attention

Terms and conditions of mortgage loans disbursed for the purpose of acquisition of apartments in the multistory building under construction at 55/3, 55/33 and 55/34 Tsarav Aghbyur Street, Yerevan within the framework of “Affordable housing to young professionals” shall take effect since 27.02.2017.

 

Important to know

 

  • Collateral shall be appraised by the independent licensed appraisal companies cooperating with the Bank at the rates set by the appraisal companies. Please refer here for the list and rates of the appraisal companies.
  • Annual actual interest rate shows how much the loan will cost to the customer in case interests and other payments are repaid in due amounts and specified timelines. Please refer here for the calculation of the annual actual interest rate.  
  • Loan decision shall be made within 3 business days after all required documents have been submitted.
  • During credit rating, guarantees provided by the borrower, co-borrower and their family members shall be considered in the amount of 50% (fifty percent).
  • The Borrower shall be notified about loan decision within one business day, after the Authorized body has made a decision. Required documents shall be collected and the loan shall be disbursed within 15 days maximum after the loan decision has been made. If the loan is not disbursed within the specified period, the Authorized body’s decision shall be deemed invalid and shall be submitted to the Authorized body for consideration, in case the application is resubmitted.         
  • Please refer here for the list and rates of insurance companies.

 

WARNING 

IF THE BORROWER FAILS TO PERFORM OR DULY PERFORM LOAN OBLIGATIONS UNDER THE LOAN AGREEMENT, ALL LIABILITIES ASSUMED BY THE BORROWER SHALL BE DISCHARGED OUT OF THE PROCEEDS OF REPOSSESSING AND SELLING THE COLLATERAL THAT WAS PLEDGED AS LOAN SECURITY.

 

WARNING

IF THE BORROWER FAILS TO MAKE TIMELY INTEREST AND PRINCIPAL REPAYMENTS, THE BANK WILL HAVE TO REPORT THAT NEGATIVE INFORMATION TO THE CENTRAL BANK CREDIT REGISTER.

 

WARNING

IF THE BORROWER FAILS TO PERFORM LOAN OBLIGATIONS, THE COLLATERAL AND THE BORROWER’S OTHER PROPERTY (IF THE COLLATERAL HAS LOST ITS VALUE) MAY BE CONFISCATED AND REALIZED BOTH THROUGH DIRECT SALE AND PUBLIC AUCTIONS IN LEGAL OR OUT-OF COURT FORMS.

Please go to https://www.abcfinance.am/finhelper/index.php?type=mortgage to get information about the system of the Financial System   




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